Streaming venture between Disney, Fox, and Warner Bros. blocked by federal judge in victory for Fubo

A federal judge has temporarily halted the launch of Venu Sports, a new sports streaming service from Warner Bros. Discovery, Disney, and Fox Corporation. The ruling, issued Friday, came just weeks before the start of the NFL season and follows a request by rival Fubo for a preliminary injunction.

U.S. District Judge Margaret Garnett ruled that Fubo’s claims—that the joint venture could reduce competition and restrain trade—had merit, leading to the decision to block Venu’s launch.

Fubo filed a lawsuit earlier this year, accusing the media giants of using their sports media rights to create an anti-competitive bundle. In response, Disney, Fox, and Warner Bros. Discovery announced plans to appeal the ruling, stating that they believe Fubo’s arguments are flawed and that Venu Sports was designed to increase consumer choice.

Venu Sports was set to offer a broad array of sports content for USD 42.99 per month, including NFL, NBA, MLB, and NHL events, drawing from the media companies’ portfolios. Following the court’s decision, Fubo’s stock jumped more than 17%. Fubo’s CEO, David Gandler, hailed the ruling as a victory for consumers, ensuring a more competitive marketplace.

This development underscores the shift among traditional media companies toward streaming as they navigate the ongoing decline of cable TV. The date for the antitrust lawsuit has not yet been set.